Ashford Hospitality Trust Inc. (NASDAQ: AHT) stock declined by 8.54% at the last close whereas the AHT stock price has shown a huge gain of about 814.57% in the pre-market trading session. Ashford Hospitality Company is a real estate investment trust (REIT) that primarily invests in luxury, full-service hotels.
>> 7 Top Picks for the Post-Pandemic Economy <<
What is happening?
Ashford Hospitality Trust stated that it has executed a 1-for-10 reverse split of its ordinary stock.
3 Tiny Stocks Primed to Explode
The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.
We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.
Click here for full details and to join for free
Sponsored
Each share of AHT’s issued and existing common stock and equivalents was changed into 1/10th of a share of AHT’s common stock after the end of business on July 16, 2021, the reverse stock split’s operative date. The number of outstanding shares of common stock was decreased from about 265.1 million to roughly 26.5 million as a consequence of the reverse split.Except for small adjustments arising from the payment of cash for fractional shares, the reverse stock split will impact all shareholders equally and will have no effect on any stockholder’s ownership percentage of shares of AHT’s common stock.
Read More
AHT’s common stock will begin trading on the New York Stock Exchange on a split-adjusted basis at market open on July 19, 2021. The common stock will continue to do business on the New York Stock Exchange under the ticker “AHT,” but with a new CUSIP number. AHT and its Board of Directors believe that by enacting a reverse stock split, it will be able to generate increased incremental demand for both its common stock and options, as well as make AHT’s shares more appealing to a wider variety of potential long-term institutional investors, individual investors, and buy-side analysts.
Moreover,
AHT also conducted a 1-for-10 reverse split of the partnership units of AHT’s operational partnership, Ashford Hospitality Limited Partnership, on July 16, 2021. The amount of outstanding partnership units of Ashford Trust OP was decreased from about 4.0 million units to roughly 402,222 units as a consequence of the reverse split.